AUD/USD struggles to break above 0.7750 in choppy day

AUD/USD seems to have steadied around 0.7750 in early American session.
US Dollar Index continues to fluctuate below 92.00.
Weaker-than-expected US data failed to trigger a market reaction.
The AUD/USD pair edged lower toward 0.7700 during the European trading hours but didn’t have a difficult time reversing its direction. However, the pair seems to be struggling to gather bullish momentum as it trades flat on the day around 0.7750.

Market action remains choppy ahead of FOMC meeting
Earlier in the day, the data published by the US Census Bureau showed that Retail Sales in February declined by 3%. Although this reading came in much worse than analysts’ estimate for a decrease of 0.5%, it was largely ignored by market participants. Additionally, the Federal Reserve’s monthly report revealed that Industrial Production contracted by 2.2% in February amid severe weather conditions.

Despite the disappointing data, the US Dollar Index is posting small daily gains near 91.90. Nevertheless, the lack of significant fundamental drivers behind the USD resilience suggests that investors are opting out to stay on the sidelines while waiting for the FOMC to announce its policy decisions on Wednesday.

Meanwhile, the 10-year US Treasury bond yield is down 1.2% on the day, possibly limiting the DXY’s upside and AUD/USD’s losses for the time being.

In the early Asian session on Wednesday, Assistant Governor of the Reserve Bank of Australia (RBA), Christopher Kent, will be delivering a speech. The Westpac Leading Index for February will be featured in the Australian economic docket as well.